Data I/O Corporation (DAIO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Data I/O Corporation (DAIO) Technology Profile & Competitive Position

Data I/O Corporation designs, manufactures, and sells programming and security deployment systems for electronic device manufacturers globally. The company's solutions are crucial for programming integrated circuits (ICs) in automotive, consumer electronics, and IoT sectors, positioning it as a key enabler in the electronics manufacturing supply chain.

What Is the Investment Thesis for DAIO?

Data I/O Corporation presents a focused investment opportunity within the electronic device programming sector. With a market capitalization of $32.3M, the company operates in a niche market providing essential services to OEMs and EMS providers. The company's gross margin of 49.3% indicates a strong pricing power and efficient cost management. Growth catalysts include the increasing complexity of ICs and the growing demand for secure programming solutions, particularly in the automotive and IoT sectors. However, the negative profit margin of -23.2% highlights the need for improved operational efficiency and cost control. Investors should monitor the company's ability to capitalize on growth opportunities while managing expenses to achieve profitability.

Based on FMP financials and quantitative analysis

DAIO Key Highlights

• Market Cap of $32.3M indicates a small-cap company with potential for growth but also higher volatility.
• Gross Margin of 49.3% suggests strong pricing power and efficient cost management in its operations.
• Profit Margin of -23.2% indicates the company is currently operating at a loss, requiring attention to cost control and revenue growth.
• Beta of 1.10 suggests the stock is slightly more volatile than the market, indicating higher risk and potential reward.
• The company operates in the growing markets of automotive, consumer electronics, and IoT, providing exposure to these expanding sectors.

Who Are DAIO's Competitors?

DAIO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are DAIO's Key Strengths?

• Specialized expertise in IC programming.
• Established customer relationships.
• Comprehensive product portfolio.
• Strong gross margin.

What Are DAIO's Weaknesses?

• Negative profit margin.
• Small market capitalization.
• Limited geographic presence.
• Dependence on specific industries.

What Could Drive DAIO Stock Higher?

• Increasing demand for secure programming solutions in the automotive and IoT sectors.
• Growing complexity of integrated circuits requiring advanced programming systems.
• Potential new product releases targeting specific market segments.
• Strategic partnerships to expand market reach and product offerings.

What Are the Key Risks for DAIO?

• Financial-distress signal — its Altman Z-Score of 1.62 sits in the distress zone (elevated bankruptcy risk).
• Negative return on equity (-55.8%) — the business is not currently generating profit on shareholder capital.
• Weak fundamentals — a Piotroski F-Score of 1/9 flags soft profitability, leverage or efficiency.
• Technological obsolescence of existing programming systems.
• Intense competition from other programming equipment providers.
• Economic downturns affecting demand for electronic devices.
• Supply chain disruptions impacting the availability of components.
• Negative profit margin requiring improved operational efficiency.

What Are the Growth Opportunities for DAIO?

• Expansion in the Automotive Sector: The increasing electronic content in vehicles, driven by autonomous driving and advanced driver-assistance systems (ADAS), presents a significant growth opportunity for Data I/O. The market for automotive IC programming is projected to grow as automotive manufacturers require more sophisticated and secure programming solutions. Data I/O's SentriX security deployment system is well-positioned to capitalize on this trend, offering secure programming for automotive applications. Timeline: Ongoing.
• Penetration of the IoT Market: The proliferation of IoT devices across various industries, including smart homes, industrial automation, and healthcare, is driving demand for IC programming solutions. Data I/O can leverage its existing product portfolio and expertise to target IoT device manufacturers. By offering secure and efficient programming solutions, Data I/O can capture a significant share of the growing IoT market. Timeline: Ongoing.
• Geographic Expansion: Data I/O has the opportunity to expand its geographic presence, particularly in emerging markets with growing electronics manufacturing industries. By establishing partnerships with local distributors and sales representatives, Data I/O can reach new customers and increase its market share. Focus on regions with high growth in electronics manufacturing, such as Southeast Asia and Latin America. Timeline: 1-3 years.
• Development of Advanced Programming Solutions: Investing in the development of advanced programming solutions that support the latest IC technologies can provide Data I/O with a competitive advantage. This includes developing solutions for programming complex memory devices, microcontrollers, and security chips. By staying ahead of the technology curve, Data I/O can attract new customers and retain existing ones. Timeline: Ongoing.
• Strategic Partnerships and Acquisitions: Data I/O can pursue strategic partnerships and acquisitions to expand its product offerings and market reach. Partnering with complementary technology providers can enable Data I/O to offer more comprehensive solutions to its customers. Acquiring smaller companies with innovative technologies can accelerate Data I/O's growth and enhance its competitive position. Timeline: 2-5 years.

What Opportunities Does DAIO Have?

• Expansion in the automotive sector.
• Penetration of the IoT market.
• Geographic expansion.
• Development of advanced programming solutions.

What Threats Does DAIO Face?

• Technological obsolescence.
• Intense competition.
• Economic downturns.
• Supply chain disruptions.

What Are DAIO's Competitive Advantages?

• Specialized expertise in IC programming and security deployment.
• Established relationships with OEMs and EMS providers.
• Proprietary technology and intellectual property.
• Comprehensive product portfolio covering various programming needs.

What Does DAIO Do?

Data I/O Corporation, founded in 1969 and headquartered in Redmond, Washington, specializes in the design, manufacture, and sale of programming and security deployment systems and services. These systems are essential for electronic device manufacturers who need to program integrated circuits (ICs) with specific data. The company's product portfolio includes offline automated programming systems like PSV handlers, the SentriX security deployment system, and in-line automated programming systems such as the RoadRunner and RoadRunner3 series. They also offer the LumenX Programmer and non-automated FlashPAK III programming systems. Data I/O serves original equipment manufacturers (OEMs) in the automotive, consumer electronics, and Internet of Things (IoT) sectors, as well as their programming center partners and electronic manufacturing service (EMS) contract manufacturers. The company distributes its products through direct sales, indirect sales representatives, and distributors, ensuring a broad market reach across the United States, Europe, and other international markets. Data I/O's solutions are critical for ensuring the functionality and security of electronic devices in a wide range of applications.

What Products and Services Does DAIO Offer?

• Designs programming systems for integrated circuits (ICs).
• Manufactures programming systems for electronic devices.
• Sells programming systems to electronic device manufacturers.
• Offers security deployment systems for ICs.
• Provides hardware support for its programming systems.
• Offers system installation and repair services.
• Provides device programming services.

How Does DAIO Make Money?

• Sells programming systems to OEMs, EMS providers, and programming centers.
• Provides hardware support and maintenance services.
• Offers device programming services.
• Generates revenue through direct sales, indirect sales representatives, and distributors.

What Industry Does DAIO Operate In?

Data I/O Corporation operates within the hardware, equipment, and parts industry, a segment that supports the broader electronics manufacturing sector. The industry is characterized by technological advancements, increasing complexity of integrated circuits, and a growing demand for secure programming solutions. The rise of IoT devices and the increasing electronic content in automobiles are driving the need for advanced programming and security deployment systems. Data I/O competes with other providers of programming equipment and services, focusing on delivering specialized solutions to meet the evolving needs of its customers.

Who Are DAIO's Key Customers?

• Original equipment manufacturers (OEMs) in automotive.
• OEMs in consumer electronics.
• OEMs in the Internet of Things (IoT).
• Electronic manufacturing service (EMS) contract manufacturers.
• Programming center partners.

How Data I/O Corporation Is Valued

Data I/O Corporation carries a market capitalization of $32.3M, placing it in the micro-cap category. Relative to its peer group, DAIO's quantitative score of 28/100 is below the peer average of 66/100.

Company Profile

Data I/O Corporation operates in the Hardware, Equipment & Parts industry within the Technology sector. It is headquartered in Redmond, US. The company is led by CEO William O. Wentworth. DAIO has traded publicly since 1989.

ROE -56%Key Financial Metrics

Return on equity for Data I/O Corporation stands at -55.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -45.5%, showing how much profit it generates from its asset base. Its free cash flow yield is -14.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.64 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -22.2%, the inverse of the P/E and a quick read on earnings relative to price.

F-Score 1/9Financial Health

Data I/O Corporation's Piotroski F-Score is 1/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of 1.62 places it in the distress zone, a signal of elevated financial risk.

FY2026 estForward Outlook

Wall Street analysts project Data I/O Corporation revenue of about $22.2M for fiscal 2026, with EPS near $-0.30.

DAIO Financials

DAIO Latest News

DAIO Analyst Consensus

DAIO MoonshotScore

Data I/O Corporation Technology Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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